DBS Vickers Securities (DBSVS) has given a “BUY” recommendation on Advanced Info Service Public Company Limited (ADVANC) with a target price of ฿222.00/share (DCF, WACC 7%, TG 4.5%) and a dividend yield forecast at 4%.
Revenue outlook in 1Q21 excluding IC is expected to contract by 2% YoY, but expand by 1% YoY. Revenue from mobile would increase 1% QoQ, but fall 3.4% YoY despite the prepaid segment saw an improvement, and the number of new customers surged thanks to the government stimulus package, while ARPU is estimated to climb slightly.
FBB’s growth is likely to continue positively, DBSVS expected an expansion of 16% YoY and 2.7% QoQ in 1Q21, but ARPU would drop.
Revenue from SIM & Device sales would decline 30.4% QoQ, but grow 12.9% YoY due to an improving public spending and the late launch of new mobile phones.
Targeting 5G customers to surpass 1 million within 2021 from the iPhone12 launching and a new low-price product introduction.
Overall, DBSCS forecasted ADVANC’s core profit of 6.5 billion baht in 1Q21 (-7.8% YoY, -5.8% QoQ), seeing a long-term improving performance, especially when the country reopens and foreign tourists return to Thailand.